Nintendo had a net loss of 17.23 billion yen in the quarter ended June 30, 2012

Nintendo announced a net loss and drop in revenue in its Q2 2012 quarterly earnings report, but the video game giant has seen worse days.

According to the earnings report, Nintendo had a net loss of 17.23 billion yen in the quarter ended June 30, 2012. However, the good news is that the company's net loss was 25.52 billion yen during the same time period last year, meaning that Nintendo is doing a bit better these days.

Nintendo also posted a 9.7 percent decline in revenue to 84.81 billion yen. The reason for the losses? A strong yen and slow sales of its Wii gaming console, according to reports.

Nintendo has also faced a lot of issues with its portable 3DS over the past year. The handheld was released in March 2011 and initially had poor sales due to a lackluster lineup of titles (says Nintendo). This led to the company's decision to slash the price from $249.99 to $169.99 in August 2011.

But the 3DS has been up and down with its sales. Earlier this month, Nintendo CEO Satoru Iwata said 3DS sales in the U.S. and Europe were "weak." Also, the company posted its first annual loss ever in April 2012, where it suffered a 37.3 billion yen operating loss and a net loss of 43.2 billion yen.

But Nintendo has a lot to look forward to this year. For instance, the company will release its new Wii U gaming console that features a controller with a 6.2-inch screen, an accelerometer, gyroscope, microphone, speakers, stylus, front-facing camera, sensor strip and rumble support. With the Wii U's release will also come Nintendo's own social network called Miiverse.

Another new addition to the Nintendo family is the 3DS XL, which is a larger version of the 3DS available for $199 in Japan this month and in the U.S. next month.

Despite all of these new releases, it remains to be seen how Nintendo will fare against not only other gaming companies like Microsoft's Xbox division (which attracts core gamers more so than Nintendo), but also against mobile device makers for gaming on smartphones and tablets.

Looking ahead, Nintendo predicts a net profit of 20 billion yen, an operating profit of 35 billion yen and revenue of 820 billion yen for the year through March 2013.